DIGITAL FREE TRADE ZONE TO TURN MALAYSIA INTO E-COMMERCE POWERHOUSE
It will be the first e-commerce hub in the world outside China
MA LAYS IA inches closer to becoming a global force in digital economy with the groundbreaking of the Digital Free Trade Zone (DFTZ) today.
Not only is DFTZ set to propel Malaysia as one of the world’s ecommerce hubs, it will also bolster the country’s economy and elevate its estimated one million small- and medium-scale enterprises (SMEs).
The event will be launched by Prime Minister Datuk Seri Najib Razak and China’s Alibaba Group founder and executive chairman Jack Ma, and will be aired live.
Malaysia Digital Economy Corporation (MDEC) chief executive officer Datuk Yasmin Mahmood said DFTZ was the first step in moulding Malaysia into an international digital powerhouse.
Together with one of its first investors and strategic partner, Alibaba Group, Malaysia will achieve its e-commerce ambitions as DFTZ has the potential to double the growth rate of SME goods exports by 2025.
There will be an estimated RM320 billion worth of goods moving through DFTZ, creating 60,000 jobs by 2025.
“Five investors have expressed interest to the government to develop Port Klang in Selangor and Bukit Kayu Hitam in Kedah as ecommerce hubs,” Yasmin said.
DFTZ, an MDEC-driven initiative, is a joint undertaking between the corporation and Alibaba Group.
It is the first e-commerce hub in the world outside of China and is the culmination of Najib’s and Ma’s dream.
“This is an important development as Malaysia has always been one of the world’s top 20 trading nations, partly driven by its burgeoning SMEs,” Yasmin said.
“With the advent of technology, specifically e-commerce, trade has grown by leaps and bounds with customers from all over the world ordering products and goods via online.
“Now, online trade or e-com- merce has taken Malaysia by storm, growing into a multi-billion dollar business, and Malaysia will take advantage of this phenomenon.”
DFTZ will be situated at the site of the former low-cost carrier terminal (LCCT) in Sepang, Selangor, and part of Kuala Lumpur International Airport’s Aeropolis. It will be a hub of e-commerce activities that will see the transportation and delivery of thousands of parcels — a mainstay of online shopping.